Graham Number Screen Flags 61% Margin of Safety

Benjamin Graham's defensive formula is simple: fair value equals the square root of 22.5 times trailing EPS times book value per share. When a stock trades below that number, the gap is the margin of safety. The September 18 Graham Number screen threw up eight NSE names. The widest discount is [Indegene](/stock/INDGN) (NSE: INDGN) at 61.2%. That is not a minor statistical wobble. It is a deep value signal that demands more work. The list is heavy with lenders and government-linked insurers. [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) shows 55.8% headroom, [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP) 53.2%. NSE: JKBANK, NSE: RECLTD, NSE: PFC, NSE: CENTRALBK, and NSE: GICRE also trade below their Graham Number. For a screen built on book value and trailing earnings, financials often dominate. That is both a feature and a warning. Why Graham Number discounts cluster in financial stocks Lenders and infrastructure financiers carry debt by design. Graham Number uses book value per share. A lender's book value is only as good as its loan book. If non-performing assets are understated, the book value is inflated and the margin of safety is not real. [Power Finance Corporation](/stock/PFC) (NSE: PFC) and [REC](/stock/RECLTD) (NSE: RECLTD) have secured power sector exposure and stable parentage, but they still run debt levels Graham's original formula was not designed for. [Central Bank of India](/stock/CENTRALBK) (NSE: CENTRALBK) and [J&K Bank](/stock/JKBANK) (NSE: JKBANK) have lived through long NPA cycles. [General Insurance Corporation of India](/stock/GICRE) (NSE: GICRE) has book value tied to underwriting reserves and catastrophe outcomes. Indegene is the outlier with a 61.2% margin of safety Indegene is the odd name on this list because it is not a lender or insurer. The company listed in 2024 and provides life sciences commercialization services. Its risks are client concentration and post-IPO lockup overhangs. Graham Number uses trailing E...